GBP/JPY is expected to trade in a lower range as the pair is moving under pressure. The pair is moving in a downtrend on an intraday basis. The falling 20-period and 50-period MAs maintain strong selling pressure. Furthermore, the intraday RSI is below its neutrality area at 50 lacking upward momentum. In this case, as long as 187.50 holds on the upside, a test of 185.95 (a major support) would be expected, and a slide below this threshold would trigger a bearish acceleration towards 134.90.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 185.95. A breakout of that target will move the pair further downwards to 184.90. The pivot point stands at 187.50. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 187.95 and the second target at 189.
Resistance levels: 187.95 189 189.85
Support levels: 185.95 184.90 184.10
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